A long-awaited law is expected to come into action next week in an attempt to stamp down on fake reviews and shoddy sales tactics in ecommerce.

Having passed its third reading in the House of Commons, the bill in committee stage at the House of Lords, is expected to be passed by Tuesday.

The subsequent Digital Markets, Competition and Consumers Act (DMCC) will provide for the regulation of competition in digital markets and stengthen consumer rights, while also protecting businesses who face unfair advantages from competitors who deploy fake reviews and recommendations to boost their products and services.

While £224bn was spent by the UK in online retail in 2022, the new law, says the Department for Business and Trade, seeks to crack down on practices found evident in 90 per cent of business. The DMCC also aims to stop hidden fees, known as 'drip pricing', which are calculated to cost consumers a staggering £2.2 billion annually.

To help consumers in making informed decisions, the act will ensure mandatory fees are included in the headline price or early in the shopping process.

A government spokesman said the DMCC will give the Competition and Markets Authority tougher tools as a regulator: "In competitive markets, firms strive to give consumers the best products, most choice, and lowest possible prices. The [DMCC] will provide the CMA with stronger tools to investigate competition problems and take faster, more effective action, including where companies collude to bump-up prices at the expense of UK consumers.

The CMA will now also be able to directly enforce consumer law, rather than go through lengthy court processes, while the DMCC also heightens the consequences for wrongdoers, giving the power to impose penalties of up to 10% of global turnover for breaching consumer law.

Kevin Hollinrake, minister for Enterprise, Markets and Small Business, said: "Smartphones and online shopping have profoundly changed the landscape for businesses, consumers and the foundations of a modern thriving economy, which now lie in strong consumer choice, confidence and competition. From abuse of power by tech giants, to fake reviews, scams and rip-offs like being caught in a subscription trap - consumers deserve better."

Meanwhile, the government says it will work with the CMA this spring to deliver new guidance over fake reviews - and plans to hold website hosts accountable for the content on their pages.

Allied to this consumer protection work, it also wishes to adapt the current Price Marking Order, which is a retained EU law earmarked for reform. Unedited for more than 20 years, the aim will be to ensure clearer and simpler guidance on pricing. Small businesses and traders engaging in online marketing are understood to remain exempt from the changes.

The CMA said it looked forward to the act strengthening its hand and that it will "bolster the work we are already doing to protect consumers".